BILL NUMBER: SB 709	CHAPTERED  07/12/99

	CHAPTER   93
	FILED WITH SECRETARY OF STATE   JULY 12, 1999
	APPROVED BY GOVERNOR   JULY 12, 1999
	PASSED THE SENATE   JULY 1, 1999
	PASSED THE ASSEMBLY   JUNE 28, 1999
	AMENDED IN ASSEMBLY   JUNE 28, 1999

INTRODUCED BY   Committee on Budget and Fiscal Review

                        FEBRUARY 24, 1999

   An act to amend Section 13385 of, and to add Sections 13263.3,
13263.6, and 13362 to, the Water Code, relating to water.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 709, Committee on Budget and Fiscal Review.  Waste discharge
requirements and penalties.
   (1) Under existing law, the State Water Resources Control Board
and the California regional water quality control boards are among
the principal agencies with primary regulatory authority over water
quality.
   This bill, under specified circumstances, would authorize the
state board, a regional board, or a publicly owned treatment works
(POTW) to require a discharger subject to its jurisdiction to
complete and implement a prescribed pollution prevention plan.  The
bill would authorize the state board or a regional board to require a
POTW to complete and implement a pollution prevention plan with
specified components, thereby imposing a state-mandated local
program.  The bill would authorize the state board, a regional board,
or a POTW to require a discharger to comply with the pollution
protection plan after providing an opportunity for comment at a
public proceeding with regard to that plan.  The bill would require a
regional board to prescribe effluent limitations as part of the
waste discharge requirements of a POTW for specified substances.  The
bill would authorize a POTW with an approved pretreatment program to
conduct specified inspections and assess prescribed penalties.
   (2) Existing law subjects any person who violates prescribed
provisions of the Clean Water Act or the Porter-Cologne Water Quality
Control Act to civil liability, as prescribed.
   This bill would require liability to be assessed in connection
with a violation of those provisions at a level that recovers the
economic benefits, if any, derived from the acts that constitute the
violation.  The bill would require a mandatory minimum penalty of
$3,000 to be assessed under prescribed circumstances.  The bill would
require the state board to report annually to the Legislature
regarding its enforcement activities, as specified.
   (3) The bill would specify that certain provisions of the bill
prevail over provisions in Assembly Bill 1104.
  (4) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  This act shall be known as the Clean Water Enforcement
and Pollution Prevention Act of 1999.
  SEC. 2.  The Legislature finds and declares all of the following:
   (a) The State Water Resources Control Board and the regional water
quality control boards have identified numerous water bodies
throughout the state that are not meeting water quality standards.
   (b) The sources of water quality impairments in California are
diverse and include nonpoint sources such as agricultural, forestry,
and urban dry weather and storm water runoff, residential onsite
sewage disposal systems, and boats and marinas, and point sources
such as industrial discharges and municipal publicly owned treatment
works (POTWs).
   (c) The state board and the regional boards prescribe waste
discharge requirements to regulate discharges by point sources.
   (d) Recent investigations indicate that current enforcement
efforts of the state board and the regional boards may not be
achieving full compliance with waste discharge requirements in a
timely manner, and that swift and timely enforcement of waste
discharge requirements will assist in bringing the state's waters
into compliance and will ensure that violators do not realize
economic benefits from noncompliance.
   (e) To attain water quality standards in the state's waters,
additional efforts are also needed to control threats to the health
of the state's waters that are posed by nonpoint sources of
pollution.
  SEC. 3.  Section 13263.3 is added to the Water Code, to read:
   13263.3.  (a) The Legislature finds and declares that pollution
prevention should be the first step in a hierarchy for reducing
pollution and managing wastes, and to achieve environmental
stewardship for society.  The Legislature also finds and declares
that pollution prevention is necessary to support the federal goal of
zero discharge of pollutants into navigable waters.
   (b) (1) For the purposes of this section, "pollution prevention"
means any action that causes a net reduction in the use or generation
of a hazardous substance or other pollutant that is discharged into
water and includes any of the following:
   (A) "Input change," which means a change in raw materials or
feedstocks used in a production process or operation so as to reduce,
avoid, or eliminate the generation of pollutants discharged in
wastewater.
   (B) "Operational improvement," which means improved site
management so as to reduce, avoid, or eliminate the generation of
pollutants discharged in wastewater.
   (C) "Production process change," which means a change in a
process, method, or technique that is used to produce a product or a
desired result, including the return of materials or their components
for reuse within the existing processes or operations, so as to
reduce, avoid, or eliminate the generation of pollutants discharged
in wastewater.
   (D) "Product reformulation," which means changes in design,
composition, or specifications of end products, including product
substitution, so as to reduce, avoid, or eliminate the generation of
problem pollutants discharged in wastewater.
   (2) For the purposes of this section, "pollution prevention" does
not include actions that merely shift a pollutant in wastewater from
one environmental medium to another environmental medium, unless
clear environmental benefits of such an approach are identified to
the satisfaction of the state board, the regional board, or POTW.
   (c) For the purposes of this section, "discharger" means any
entity required to obtain a national pollutant discharge elimination
system (NPDES) permit pursuant to the Clean Water Act (33 U.S.C. Sec.
1251 et seq.), or any entity subject to the pretreatment program as
defined in Part 403 (commencing with Section 403.1) of Subchapter N
of Chapter 1 of Part 403 of Title 40 of the Code of Federal
Regulations.
   (d) (1) The state board, a regional board, or a POTW may require a
discharger subject to its jurisdiction to complete and implement a
pollution prevention plan if any of the following apply:
   (A) A discharger is determined by the state board to be a chronic
violator, and the state board, a regional board, or the POTW
determines that pollution prevention could assist in achieving
compliance.
   (B) The discharger significantly contributes, or has the potential
to significantly contribute, to the creation of a toxic hot spot as
defined in Section 13391.5.
   (C) The state board, a regional board, or a POTW determines
pollution prevention is necessary to achieve a water quality
objective.
   (2) A pollution prevention plan required of a discharger other
than a POTW pursuant to paragraph (1) shall include all of the
following:
   (A) An analysis of one or more of the pollutants, as directed by
the state board, a regional board, or a POTW, that the facility
discharges into water or introduces into POTWs, a description of the
sources of the pollutants, and a comprehensive review of the
processes used by the discharger that result in the generation and
discharge of the pollutants.
   (B) An analysis of the potential for pollution prevention to
reduce the generation of the pollutants, including the application of
innovative and alternative technologies and any adverse
environmental impacts resulting from the use of those methods.
   (C) A detailed description of the tasks and time schedules
required to investigate and implement various elements of pollution
prevention techniques.
   (D) A statement of the discharger's pollution prevention goals and
strategies, including priorities for short-term and long-term
action.
   (E) A description of the discharger's existing pollution
prevention methods.
   (F) A statement that the discharger's existing and planned
pollution prevention strategies do not constitute cross media
pollution transfers unless clear environmental benefits of such an
approach are identified to the satisfaction of the state board, the
regional board, or the POTW, and information that supports that
statement.
   (G) Proof of compliance with the Hazardous Waste Source Reduction
and Management Review Act of 1989 (Article 11.9 (commencing with
Section 25244.12) of Chapter 6.5 of Division 20 of the Health and
Safety Code) if the discharger is also subject to that act.
   (H) An analysis, to the extent feasible, of the relative costs and
benefits of the possible pollution prevention activities.
   (I) A specification of, and rationale for, the technically
feasible and economically practicable pollution prevention measures
selected by the discharger for implementation.
   (3) The state board or a regional board may require a POTW to
complete and implement a pollution prevention plan that includes all
of the following:
   (A) An estimate of all of the sources of a pollutant contributing,
or potentially contributing, to the loading of that pollutant in the
treatment plant influent.
   (B) An analysis of the methods that could be used to prevent the
discharge of the pollutants into the POTW, including application of
local limits to industrial or commercial dischargers regarding
pollution prevention techniques, public education and outreach, or
other innovative and alternative approaches to reduce discharges of
the pollutant to the POTW.  The analysis also shall identify sources,
or potential sources, not within the ability or authority of the
POTW to control, such as pollutants in the potable water supply,
airborne pollutants, pharmaceuticals, or pesticides, and estimate the
magnitude of those sources, to the extent feasible.
   (C) An estimate of load reductions that may be attained through
the methods identified in subparagraph (B).
   (D) A plan for monitoring the results of the pollution prevention
program.
   (E) A description of the tasks, cost, and time required to
investigate and implement various elements in the pollution
prevention plan.
   (F) A statement of the POTW's pollution prevention goals and
strategies, including priorities for short-term and long-term action,
and a description of the POTW's intended pollution prevention
activities for the immediate future.
   (G) A description of the POTW's existing pollution prevention
programs.
   (H) An analysis, to the extent feasible, of any adverse
environmental impacts, including cross media impacts or substitute
chemicals, that may result from the implementation of the pollution
prevention program.
   (I) An analysis, to the extent feasible, of the costs and benefits
that may be incurred to implement the pollution prevention program.

   (e) The state board, a regional board, or a POTW may require a
discharger subject to this section to comply with the pollution
prevention plan developed by the discharger after providing an
opportunity for comment at a public proceeding with regard to that
plan.
   (f) The state board, regional boards, and POTWs shall make the
pollution prevention plans available for public review, except to the
extent that information is classified as confidential because it is
a trade secret.  Trade secret information shall be set forth in an
appendix that is not available to the public.
   (g) The state board or regional board may assess civil penalties
pursuant to Section 13385 against a discharger for failure to
complete a pollution prevention plan required by the state board or a
regional board, for submitting a plan that does not comply with the
act, or for not implementing a plan, unless the POTW has assessed
penalties for the same action.
   (h) A POTW may assess civil penalties and civil administrative
penalties pursuant to Sections 54740, 54740.5, and 54740.6 of the
Government Code against a discharger for failure to complete a
pollution prevention plan when required by the POTW, for submitting a
plan that does not comply with the act, or for not implementing a
plan, unless the state board or a regional board has assessed
penalties for the same action.
   (i) A discharger may change its pollution prevention plan,
including withdrawing from a pollution prevention measure required by
the state board, a regional board, or a POTW, if the discharger
determines that the measure will have a negative impact on product
quality, the safe operation of the facility, or the environmental
aspects of the facility's operation, or the discharger determines
that the measure is economically impracticable or technologically
infeasible.  Where practicable and feasible, the discharger shall
replace the withdrawn measure with a measure that will likely achieve
similar pollution prevention objectives.  A measure may be withdrawn
pursuant to this subdivision only with the approval of the executive
officer of the state board or the regional board, or the POTW.
   (j) The state board shall adopt a sample format to be used by
dischargers for completing the plan required by this section.  The
sample format shall address all of the factors the discharger is
required to include in the plan.  The board may include any other
factors determined by the board to be necessary to carry out this
section.  The adoption of the sample format pursuant to this section
is not subject to Chapter 3.5 (commencing with Section 11340) of Part
1 of Division 3 of Title 2 of the Government Code.
   (k) The state board, a regional board, or POTW may not include a
pollution prevention plan in any waste discharge requirements or
other permit issued by that agency.
   (l) This section prevails over Section 13263.3, as added to the
Water Code by Assembly Bill 1104 of the 1999-2000 Regular Session.
  SEC. 4.  Section 13263.6 is added to the Water Code, to read:
   13263.6.  (a) The regional board shall prescribe effluent
limitations as part of the waste discharge requirements of a POTW for
all substances that the most recent toxic chemical release data
reported to the state emergency response commission pursuant to
Section 313 of the Emergency Planning and Community Right to Know Act
of 1986 (42 U.S.C. Sec. 11023) indicate as discharged into the POTW,
for which the state board or the regional board has established
numeric water quality objectives, and has determined that the
discharge is or may be discharged at a level which will cause, have
the reasonable potential to cause, or contribute to, an excursion
above any numeric water quality objective.
   (b) This section prevails over Section 13263.6, as added to the
Water Code by Assembly Bill 1104 of the 1999-2000 Regular Session.
  SEC. 5.  Section 13362 is added to the Water Code, to read:
   13362.  (a) A publicly owned treatment works (POTW) with an
approved pretreatment program may conduct inspections in accordance
with the provisions of Sections 403.8(f)(1)(v) and 403.8(f)(2)(v) of
Title 40 of the Code of Federal Regulations and assess and collect
civil penalties and civil administrative penalties in accordance with
Sections 54740, 54740.5, and 54740.6 of the Government Code, with
regard to all dischargers of industrial waste to the POTW.
   (b) This section prevails over Section 13362, as added to the
Water Code by Assembly Bill 1104 of the 1999-2000 Regular Session.
  SEC. 6.  Section 13385 of the Water Code is amended to read:
   13385.  (a) Any person who violates any of the following shall be
liable civilly in accordance with this section:
   (1) Section 13375 or 13376.
   (2) Any waste discharge requirements or dredged and fill material
permit.
   (3) Any requirements established pursuant to Section 13383.
   (4) Any order or prohibition issued pursuant to Section 13243 or
Article 1 (commencing with Section 13300) of Chapter 5, if the
activity subject to the order or prohibition is subject to regulation
under this chapter.
   (5) Any requirements of Section 301, 302, 306, 307, 308, 318, or
405 of the Federal Water Pollution Control Act, as amended.
   (6) Any requirement imposed in a pretreatment program approved
pursuant to waste discharge requirements issued under Section 13377
or approved pursuant to a permit issued by the administrator.
   (b) Civil liability may be imposed by the superior court in an
amount not to exceed the sum of both of the following:
   (1) Twenty-five thousand dollars ($25,000) for each day in which
the violation occurs.
   (2) Where there is a discharge, any portion of which is not
susceptible to cleanup or is not cleaned up, and the volume
discharged but not cleaned up exceeds 1,000 gallons, an additional
liability not to exceed twenty-five dollars ($25)  multiplied by the
number of gallons by which the volume discharged but not cleaned up
exceeds 1,000 gallons.
   The Attorney General, upon request of a regional board or the
state board, shall petition the superior court to impose the
liability.
   (c) Civil liability may be imposed administratively by the state
board or a regional board pursuant to Article 2.5 (commencing with
Section 13323) of Chapter 5 in an amount not to exceed the sum of
both of the following:
   (1) Ten thousand dollars ($10,000) for each day in which the
violation occurs.
   (2) Where there is a discharge, any portion of which is not
susceptible to cleanup or is not cleaned up, and the volume
discharged but not cleaned up exceeds 1,000 gallons, an additional
liability not to exceed ten dollars ($10)  multiplied by the number
of gallons by which the volume discharged but not cleaned up exceeds
1,000 gallons.
   (d) For purposes of subdivisions (b) and (c), the term "discharge"
includes any discharge to navigable waters of the United States, any
introduction of pollutants into a publicly owned treatment works, or
any use or disposal of sewage sludge.
   (e) In determining the amount of any liability imposed under this
section, the regional board, the state board, or the superior court,
as the case may be, shall take into account the nature,
circumstances, extent, and gravity of the violation, and, with
respect to the violator, the ability to pay, any prior history of
violations, the degree of culpability, economic benefit or savings,
if any, resulting from the violation, and other matters that justice
may require.  At a minimum, liability shall be assessed at a level
that recovers the economic benefits, if any, derived from the acts
that constitute the violation.
   (f) For purposes of this section, a single operational upset that
leads to simultaneous violations of more than one pollutant parameter
shall be treated as a single violation.
   (g) Remedies under this section are in addition to, and do not
supersede or limit, any other remedies, civil or criminal except that
no liability shall be recoverable under Section 13261, 13265, 13268,
or 13350 for violations for which liability is recovered under this
section.
   (h) (1) Notwithstanding any other provision of this division, a
mandatory minimum penalty of three thousand dollars ($3,000) shall be
assessed for the first serious violation in any six-month period,
except that in lieu of assessing that penalty the state board or the
regional board may elect to require the discharger to spend an amount
equal to the penalty for a supplemental environmental project in
accordance with the enforcement policy of the state board and any
applicable guidance document, or to develop a pollution prevention
plan.
   (2) For the purpose of this section, a serious violation means any
waste discharge that exceeds the effluent limitations for a Group II
pollutant, as specified in Appendix A to Section 123.45 of Title 40
of the Code of Federal Regulations, by 20 percent or more or for a
Group I pollutant, as specified in Appendix A to Section 123.45 of
Title 40 of the Code of Federal Regulations, by 40 percent or more.
   (3) For the purposes of this section, a "supplemental
environmental project" means an environmentally beneficial project
that a person agrees to undertake, with the approval of the regional
board, that would not be undertaken in the absence of an enforcement
action under Section 13385.
   (i) Notwithstanding any other provision of this division, a
minimum mandatory penalty of three thousand dollars ($3,000) shall be
assessed for each violation, not counting the first violation
described in paragraph (1) of subdivision (h) for the purposes of
paragraph (1) of this subdivision and not counting the first three
violations described in paragraph (2), if either of the following
applies:
   (1) The person commits two or more serious violations in any
six-month period.
   (2) The person does any of the following four or more times in any
six-month period:
   (A) Exceeds a waste discharge requirement effluent limitation.
   (B) Fails to file a report pursuant to Section 13260.
   (C) Files an incomplete report pursuant to Section 13260.
   (D) Exceeds a toxicity discharge limitation where the waste
discharge requirements do not contain pollutant-specific effluent
limitations for toxic pollutants.
   (j) Mandatory penalties shall not be assessed under this section
if the violations are caused by one or any combination of the
following:
   (1) An act of war.
   (2) An unanticipated, grave natural disaster or other natural
phenomenon of an exceptional, inevitable, and irresistible character,
the effects of which could not have been prevented or avoided by the
exercise of due care or foresight.
   (3) An intentional act of a third party, the effects of which
could not have been prevented or avoided by the exercise of due care
or foresight.
   (k) The Attorney General, upon request of a regional board or the
state board, shall petition the appropriate court to collect any
penalty imposed pursuant to this section.  Any person who fails to
pay on a timely basis any penalty imposed under this section shall be
required to pay, in addition to that penalty, interest, attorneys'
fees, costs for collection proceedings, and a quarterly nonpayment
penalty for each quarter during which the failure to pay persists.
The nonpayment penalty shall be in an amount equal to 20 percent of
the aggregate amount of the person's penalty and nonpayment penalties
that are unpaid as of the beginning of the quarter.
   (l) Funds collected pursuant to this subdivision shall be
deposited in the State Water Pollution Cleanup and Abatement Account.

   (m) (1) Notwithstanding Section 7550.5 of the Government Code, the
state board shall report annually to the Legislature regarding its
enforcement activities.  The reports shall include all of the
following:
   (A) A compilation of the number of violations of waste discharge
requirements in the previous year.
   (B) A record of the formal and informal compliance and enforcement
actions taken for each violation.
   (C) An analysis of the effectiveness of current enforcement
policies, including minimum mandatory penalties.
   (D) Recommendations, if any, necessary for improvements to the
enforcement program in the following year.
   (2) The report shall be submitted to the Chairperson of the
Assembly Committee on Environmental Safety and Toxic Materials and
the Chairperson of the Senate Committee on Environmental Quality on
or before March 1, 2001, and annually thereafter.
  SEC. 7.  Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
